this time the US Treasury no longer wants to pay, it sucks
but who will pay for their bullshit?
today the stock market plunges in Paris by more than 4% ....
when is the Great Financial Crisis like in 1929; we may already be in there, but it's more hidden.
AFP the 15 / 09 / 2008 11h23
Lehman Brothers: the US Treasury can't always be the savior (Lagarde)
French Economy Minister Christine Lagarde said on Monday that the bankruptcy of the American investment bank Lehman Brothers was "a shock" but that the American government could not always save "those who are in bad shape ".
"It is a flagship of the falling banking industry", acknowledged Ms. Lagarde on Europe 1.
"It's a shock, at the same time it is the testimony of a certain balance: the US Treasury cannot constantly go to the rescue of those who are in bad shape," she said.
"What seems positive to me is that it has broadened the refinancing capacities of banks," she added.
The US Treasury had announced in early September a government trusteeship of the mortgage refinancing organizations Fannie Mae and Freddie Mac, while they restructured their finances, which had been damaged by the credit and real estate crisis.
The American investment bank Lehman Brothers announced Monday that it would file for bankruptcy during the day, "in order to protect its assets and maximize its value", for lack of finding a buyer.
"The other news, in this somewhat gloomy morning, which seems rather good to me, is the fact that Bank of America announces its merger with Merrill Lynch, (...), it is clearly an exit operation" , also stressed Ms. Lagarde.
Asked about the risks represented by the announcement of the bankruptcy of Lehman Brothers, the minister was delighted that "a dozen of the world's largest banks" have "come together to constitute a line of credit allowing their refinancing. interbank ".
"It is also a sign that they collectively have the desire to close ranks," said Ms. Lagarde.
"On the European markets, the governors of the central banks, the President of the ECB, the authorities of the financial markets and the officials of the Treasury, were in concert this weekend", during a meeting of finance ministers of the euro zone in Nice, recalled Christine Lagarde.
"We have put in place the mechanisms to ensure that the markets are not seriously messy," she continued, acknowledging that "the financial crisis and its manifestations are not over".